Business profits taxation: profits taxable in residence unless attributable to a permanent establishment, then taxed where situated. Profits are taxable only in the enterprise's State of residence unless the enterprise carries on business through a permanent establishment in the other State, in which case profits attributable to that permanent establishment may be taxed where it is situated. Attribution uses the separate and independent enterprise standard, considering functions performed, assets used and risks assumed. Where one State adjusts and taxes such profits, the other State should make an appropriate adjustment to eliminate double taxation if it agrees, or otherwise eliminate double taxation by mutual agreement. Items governed by other Articles remain subject to those Articles.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Business profits taxation: profits taxable in residence unless attributable to a permanent establishment, then taxed where situated.
Profits are taxable only in the enterprise's State of residence unless the enterprise carries on business through a permanent establishment in the other State, in which case profits attributable to that permanent establishment may be taxed where it is situated. Attribution uses the separate and independent enterprise standard, considering functions performed, assets used and risks assumed. Where one State adjusts and taxes such profits, the other State should make an appropriate adjustment to eliminate double taxation if it agrees, or otherwise eliminate double taxation by mutual agreement. Items governed by other Articles remain subject to those Articles.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
